DocuSign Envelope ID: A7DC07EA-15CF-4D34-9BCC-D8D4A9D5D730 BP GLOBAL INVESTMENTS LIMITED (Registered No.00263889) ANNUAL REPORT AND FINANCIAL STATEMENTS 2019 Board of Directors: D J Bucknall J A Hodgson J C Lyons M J O'Sullivan K A Thomson The directors present the strategic report, their report and the audited financial statements for the year ended 31 December 2019. STRATEGIC REPORT Results The profit for the year after taxation was $962,892,000 which, when added to the retained profit brought forward at 1 January 2019 of $12,054,741,000 and after deducting total paid interim dividends to ordinary shareholders of $521,000,000 gives a total retained profit carried forward at 31 December 2019 of $12,496,633,000. Principal activity and review of the business The company holds investments in subsidiary and associated undertakings worldwide. The key financial and other performance indicators during the year were as follows: 2019 2018 Variance $000 $000 % Dividend income 1,182,428 3,182,591 (63) Operating profit 1,103,249 3,125,991 (65) Profit for the year 962,892 3,038,502 (68) Total equity 12,922,421 12,480,529 4 The decrease in profit for the year was primarily due to the decrease in dividend income and the increase in impairment charges recognised against investments compared to the prior year. Section 172 (1) statement In governing the company on behalf of its shareholders and discharging their duties under section 172, the board has had regard to the factors set out in section 172 (see below) and other factors which the board considers appropriate. Section 172 factors Section 172 requires directors to have regard to the following in performing their duties, and as part of the process are required to consider, where relevant: a. The likely long-term consequences of the decision. b. The interests of the company’s employees. c. The need to foster the company’s business relationships with suppliers, customers and others. d. The impact of the company’s operations on the community and the environment. e. The desire to maintain the company’s reputation for high standards of business conduct. f. The need to act fairly between members of the company. 1 DT DocuSign Envelope ID: A7DC07EA-15CF-4D34-9BCC-D8D4A9D5D730 STRATEGIC REPORT To support the directors in the discharge of their duties, and whilst making a decision on behalf of the company, the directors have access to functional assurance support to identify matters which may have an impact on the proposed decision including, where relevant, section 172 factors as outlined above. The principal decisions taken by the directors during the year included the acquisition of investments in Fatima Power Holding LLC ("FPH") and Aparecida I Power Holding LLC ("Aparecida") in May 2019 and subsequent creation of partnerships with Natural Energia Participacoes Ltda (“Natural Energia”), which formerly owned the entire issued equity of FPH and Aparecida. Natural Energia is a company incorporated in Brazil focussed on early stage development of gas, wind and solar projects. The aims of Natural Energia align with the BP strategy to capture long-term value through the securing of sustainable gas and power demand within growing markets. The relevant factors taken into account during the decision making process, in furtherance of the company's purpose, were the advantages of BP investing in renewable energy. Such advantages include sustainable environmental impacts, smaller carbon footprint and an overall positive impact on the natural environment. Consideration was also given to consumers' demand. As of 2018, renewable energy accounted for 79% of the domestically produced electricity used in Brazil. Principal risks and uncertainties The company aims to deliver sustainable value by identifying and responding successfully to risks. Risk management is integrated into the process of planning and performance management for the BP group. The risks listed below, separately or in combination, could have a material adverse effect on the implementation of the company’s strategy, business, financial performance, results of operations, cash flows, liquidity, prospects, shareholder value and returns and reputation. Unless stated otherwise, further details on these risks are included within the risk factors in the strategic report of the BP group Annual Report and Form 20-F for the year ended 31 December 2019. Strategic and commercial risks Geopolitical The company is exposed to a range of political developments and consequent changes to the operating and regulatory environment may disrupt or curtail the company's operations or development activities. These may in turn cause production to decline, limit the company's ability to pursue new opportunities, affect the recoverability of our assets or cause us to incur additional costs. Political developments may include international sanctions, expropriation or nationalization of property, civil strife, strikes, insurrections, acts of terrorism or war and public health situations (including an outbreak of an epidemic or pandemic). The impact of the UK's exit from the EU BP have been assessing the potential impact on the group of Brexit and the UK’s future global relationships. BP have been considering different outcomes but do not believe any of these outcomes pose a significant risk to the business. The BP board’s geopolitical committee continues to monitor these developments. Joint arrangements and contractors The company may have varying levels of control over the standards, operations and compliance of its partners, contractors and sub-contractors which could result in legal liability and reputational damage. Digital infrastructure and cybersecurity Breach or failure of the company’s or third parties’ digital infrastructure or cyber security, including loss or misuse of sensitive information could damage its operations and reputation or increase costs. Climate change and the transition to a lower carbon economy Policy, legal, regulatory, technology and market developments related to the issue of climate change could increase costs, reduce demand for our products, reduce revenue and limit certain growth opportunities. Insurance The BP group’s insurance strategy could expose the BP group to material uninsured losses which in turn could adversely affect the company. 2 DT DocuSign Envelope ID: A7DC07EA-15CF-4D34-9BCC-D8D4A9D5D730 STRATEGIC REPORT Compliance and control risks Ethical misconduct and non-compliance Ethical misconduct or breaches of applicable laws by the company’s businesses or its employees could be damaging to its reputation, and could result in litigation, regulatory action and penalties. Regulation Changes in the regulatory and legislative environment could increase the cost of compliance. Reporting Failure to accurately report the company’s data could lead to regulatory action, legal liability and reputational damage. Financial risk management The company is exposed to a number of different financial risks arising from natural business exposures including market risks relating to foreign currency exchange rates and interest rates. Further details on these financial risks are included within Note 29 of the BP group Annual Report and Form 20-F for the year ended 31 December 2019. Authorized for issue by Order of the Board 30 September 2020 For and on behalf of Sunbury Secretaries Limited Company Secretary Registered Office: Chertsey Road Sunbury on Thames Middlesex TW16 7BP United Kingdom 3 DT DocuSign Envelope ID: A7DC07EA-15CF-4D34-9BCC-D8D4A9D5D730 DIRECTORS' REPORT BP GLOBAL INVESTMENTS LIMITED Directors The present directors are listed on page 1. D J Bucknall, J A Hodgson, J C Lyons, M J O'Sullivan and K A Thomson served as directors throughout the financial year. Changes since 1 January 2019 are as follows: Appointed Resigned B Gilvary — 08/07/2019 Directors' indemnity The company indemnifies the directors in its Articles of Association to the extent allowed under section 232 of the Companies Act 2006. Such qualifying third party indemnity provisions for the benefit of the company’s directors remain in force at the date of this report. Dividends During the year the company has declared and paid dividends of $521,000,000 (2018 $2,865,000,000). The directors do not propose the payment of a final dividend. Financial instruments In accordance with section 414C of the Companies Act 2006 the directors have included information regarding financial instruments as required by Schedule 7 (Part 1.6) of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 in the strategic report under Financial risk management. Post balance sheet events Since 31 December 2019, oil and gas prices have fallen sharply in large part due to the impact of the international spread of COVID-19 (Coronavirus) and geopolitical factors. The impact of COVID-19 and the current economic environment on the basis of preparation of these financial statements has been considered. The directors continue to consider it appropriate to adopt the going concern basis of accounting in preparing the financial statements. Further details are provided under Going Concern below. This is a non-adjusting event for the financial statements for the period ending 31 December 2019. On 12 June 2020 the company, together with Kenilworth Oil Company Limited, established a subsidiary registered in India named BP Business Solutions India Private Limited which will assume, from a new centre in Pune India, operational ownership of end-to-end process transformation and digital solutions. The company subscribed to 9,999 ordinary shares of INR 10 each for a consideration of INR99,990. On 13 August 2020 there was a further capital injection of $10m in order to meet the funding requirement of the new centre. On 15 June 2020 BP issued a press release detailing revised investment appraisal long-term oil and gas price assumptions used in tangible assets impairment testing. The revised long-term price assumptions used to determine recoverable amount based on value-in-use impairment tests are an average of $55/bbl for Brent and $2.90 per MMBtu for Henry Hub for the period of 2021-2050 (in 2020 prices).